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In 1995, having taken an interest in Parker and Stone's film Cannibal! the Musical after its appearance at the Sundance Film Festival, Fox Network television executive Brian Graden paid them $2000 to make another animated short as a video Christmas card he could send to friends. In turn, the duo created The Spirit of Christmas, where Jesus Christ and Santa Claus square off over the true meaning of the holiday, only to be reconciled by the four boys who would later be the stars of South Park. The film reportedly had a budget of $750, with Parker and Stone keeping the rest of their commission.
Graden initially distributed the video to 80 friends in December 1995. After months of being passed around on bootleg video and the Internet, the film caught the attention of cable television network Comedy Central. The network hired the pair to develop South Park, which premiered in the USA on August 13, 1997.